Updated at: 1537 PST, Sunday, November 01, 2009
NEW YORK: Global stocks slumped and crude oil fell on weekend after reports showed US consumers cut spending in September while sentiment turned lower this month, fanning scepticism about an economic recovery. The US dollar rebounded after steep losses on Thursday, when data that showed the US economy grew in the third quarter fuelled a global stock rally that helped gains on Friday in Asia. But Friday’s data gave a mixed picture as factory activity in the US Midwest expanded for the first time in more than a year. The result was a renewed safety bid that helped lift government debt prices on both sides of the Atlantic. Gold prices slipped below $1,040 per ounce in Europe before paring losses as the dollar extended gains against a basket of currencies; while oil prices fell 3 percent to below $78 a barrel as the bearish data dented investors’ confidence. “There is some weakness after Thursday’s exuberance over GDP data in light of today’s report on the stressed consumer,” said John Kilduff, co-chief investment officer and partner at hedge fund Round Earth Capital.
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